Interesting article about Oil

wanghong

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$ ^- ~/ b! C5 e& `8 q+ OBelow is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
" c: q7 |5 `3 L4 e0 ]companies producing Jet fuels but Biofuels. Also no wonder if some of
/ b2 Z0 O; F0 ~1 X3 }; f  xthese oil producer will go bankrupt or out of the business even if
# f2 N8 i0 M& [2 ^/ |) ncrude prices improves. This implies also to good names such as Shell,
( A, L. Y: A  R- w0 n& aEXXON, BG, BP, Cheveron ....xyz.. oils
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) S8 z; n+ b! t1 D+ f* m% G; PRecently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
8 Y6 S/ \- N' g, P+ X4 }9 OA year ago these things would have spiked the price of crude oil by at
1 O+ J8 M, t2 }least $50.00 per barrel. Today, oil price declined by a record amount.


% X5 J* l4 {1 i# X! ^+ oThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:
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1. New oil has been found in Canada, Montana, North & South Dakota and
  N9 |: W, f8 b4 J. Jin the ocean near Brazil. Each of these oil fields has more oil than
Arabia.

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2. New natural gas has been found in Pennsylvania and West Virginia.
8 Y7 Q% q5 O; c. q8 v! m0 ^This is the largest find in North America.
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# d2 ~' Q+ D7 o% |: r  {5 X7 `3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
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4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
* J) A7 h. U, X0 Apotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.


& m& s$ O. _* y5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
3 F$ h9 Z% l/ L# N7 z( gcattle, turkey and chicken processing plant will soon sell their fat
" L8 W  ]+ _! jto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
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) F4 l+ h, A0 z6. There are 99 nuclear reactors in various stages of planning and
- ]1 S+ g) m. K0 B5 \construction around the world at this time. Several hundred more are
; ?5 v  Y+ R0 W% vexpected to be built in the future. Much of the energy they produce
will replace oil.
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5 C) O9 N: `( ~( F* ^4 K, q2 X0 X8 D7. Every company in any form of transportaion business is replacing
, t2 ^- Y3 _1 ~9 folder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
; l+ B6 Y6 R5 z1 U" oare experiencing 20% to 25% better fuel econony with the new
. v7 L1 e& H( H- h$ {9 jequipment.


7 y4 U* q' `- w& IAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
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5 R" S3 e1 v4 o# G, N  e- D8. Cities and counties throughout the US are selling the rights to
  z2 q# T1 G% M; y: G: |capture methane gas from landfills. This is a huge source of gas
* L5 x5 e- t- k: ~( |available at very little cost or risk. The gas is displacing crude
oil.
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9. Coal is being transformed into a clean burning liquid fuel. The CO2
& t! i; @" R( h* }( Y; I$ e3 f% b- sproduced as a byproduct is sold to oil companies for injection into
oil wells.

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10. Solar, wind and ocean energy is displacing oil as an energy
4 S' b$ y3 h6 s( Z. Xsource. Three new wind turbines are being erected every day in the US.

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8 R8 e3 B9 C7 s4 w. V/ {! ^8 u: p! [8 mEach of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
$ a7 Q5 ~" v3 L( G, K5 gto control oil prices.


With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
, ^* i9 A  |8 T1 }) S8 {value .....
0 {5 k( y4 A, d; Q! J8 s5 i; jIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2 }  k3 u% I; a; [; ~- O2009 ... FYI-Only